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Genuine Parts (GPC) Outpaces Stock Market Gains: What You Should Know
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Genuine Parts (GPC - Free Report) closed at $171.94 in the latest trading session, marking a +1.25% move from the prior day. The stock outpaced the S&P 500's daily gain of 0.75%. Meanwhile, the Dow gained 0.4%, and the Nasdaq, a tech-heavy index, added 10.36%.
Heading into today, shares of the auto and industrial parts distributor had lost 7.03% over the past month, outpacing the Auto-Tires-Trucks sector's loss of 24.84% and lagging the S&P 500's loss of 5.98% in that time.
Genuine Parts will be looking to display strength as it nears its next earnings release. In that report, analysts expect Genuine Parts to post earnings of $1.87 per share. This would mark year-over-year growth of 4.47%. Meanwhile, our latest consensus estimate is calling for revenue of $5.29 billion, up 10.2% from the prior-year quarter.
It is also important to note the recent changes to analyst estimates for Genuine Parts. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. Genuine Parts is currently sporting a Zacks Rank of #2 (Buy).
In terms of valuation, Genuine Parts is currently trading at a Forward P/E ratio of 19.74. For comparison, its industry has an average Forward P/E of 15.79, which means Genuine Parts is trading at a premium to the group.
It is also worth noting that GPC currently has a PEG ratio of 1.65. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Automotive - Replacement Parts was holding an average PEG ratio of 1.57 at yesterday's closing price.
The Automotive - Replacement Parts industry is part of the Auto-Tires-Trucks sector. This group has a Zacks Industry Rank of 163, putting it in the bottom 36% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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Genuine Parts (GPC) Outpaces Stock Market Gains: What You Should Know
Genuine Parts (GPC - Free Report) closed at $171.94 in the latest trading session, marking a +1.25% move from the prior day. The stock outpaced the S&P 500's daily gain of 0.75%. Meanwhile, the Dow gained 0.4%, and the Nasdaq, a tech-heavy index, added 10.36%.
Heading into today, shares of the auto and industrial parts distributor had lost 7.03% over the past month, outpacing the Auto-Tires-Trucks sector's loss of 24.84% and lagging the S&P 500's loss of 5.98% in that time.
Genuine Parts will be looking to display strength as it nears its next earnings release. In that report, analysts expect Genuine Parts to post earnings of $1.87 per share. This would mark year-over-year growth of 4.47%. Meanwhile, our latest consensus estimate is calling for revenue of $5.29 billion, up 10.2% from the prior-year quarter.
It is also important to note the recent changes to analyst estimates for Genuine Parts. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. Genuine Parts is currently sporting a Zacks Rank of #2 (Buy).
In terms of valuation, Genuine Parts is currently trading at a Forward P/E ratio of 19.74. For comparison, its industry has an average Forward P/E of 15.79, which means Genuine Parts is trading at a premium to the group.
It is also worth noting that GPC currently has a PEG ratio of 1.65. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Automotive - Replacement Parts was holding an average PEG ratio of 1.57 at yesterday's closing price.
The Automotive - Replacement Parts industry is part of the Auto-Tires-Trucks sector. This group has a Zacks Industry Rank of 163, putting it in the bottom 36% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.